Adani Power Ltd signs 25-year Uttarakhand supply agreement

Adani Power Ltd has signed a 25-year Power Supply Agreement with Uttarakhand Power Corporation Limited for 1,234 MW of ex-bus net thermal power supply, following its successful bid in the state utility's tender. The agreement converts the earlier award into a long-term supply arrangement, although tariff adoption remains subject to regulatory approval.

What agreement has Adani Power Ltd signed with UPCL?

Adani Power Ltd has signed a 25-year Power Supply Agreement, or PSA, with Uttarakhand Power Corporation Limited (UPCL) for the supply of 1,234 MW of ex-bus net thermal power. The company disclosed the signing in a regulatory filing dated November 4, 2026, under Regulation 30 of the Listing Obligations and Disclosure Requirements regulations.

The agreement follows Adani Power being declared the successful bidder in a competitive tender issued by UPCL. The utility had earlier issued a Letter of Award, or LoA, to the company on October 13, 2026, for the same long-term supply requirement. The signed PSA formalises the commercial arrangement contemplated under that award.

The contracted supply is measured at the ex-bus level, meaning the stated capacity is available at the generating station busbar before transmission losses. The underlying project has an installed capacity of 1,320 MW, while the contracted net ex-bus supply is 1,234 MW.

How did the Uttarakhand thermal power contract develop?

The Uttarakhand contract developed through UPCL's competitive procurement process, in which Adani Power emerged as the successful bidder. The company then received the LoA in October for a 25-year thermal power supply arrangement, before announcing the PSA signing in November.

Prior to the award, the Uttarakhand Cabinet had approved a 25-year arrangement for UPCL to procure coal-based electricity from Adani Power. The Cabinet authorisation enabled UPCL to execute the PSA and related documents, meet contractual requirements and seek statutory permissions.

Reports on the Cabinet decision stated that Adani Power was the lowest bidder and that the composite tariff was Rs 5.746 per unit. The company is to establish the project in Chhattisgarh, where a coal block has already been allocated, according to the information provided on the transaction.

The agreement is distinct from Adani Power's May 2025 announcement concerning Uttar Pradesh. In that project, the company said it had won a bid to supply 1,500 MW net from a proposed 2x800 MW ultra-supercritical plant under a separate long-term arrangement with Uttar Pradesh Power Corporation Limited.

What approvals still apply to the power supply agreement?

The arrangement remains subject to the Uttarakhand Electricity Regulatory Commission adopting the tariff under Section 63 of the Electricity Act, 2003. This condition was stated when the LoA was disclosed and is relevant to the implementation of the long-term procurement agreement.

Section 63 provides for tariff adoption by the appropriate commission when power procurement follows a transparent competitive bidding process in line with guidelines issued by the central government. UPCL's tender process and Adani Power's successful bid form the basis for seeking this regulatory action.

The available disclosures do not specify when the tariff approval process will be completed. They also do not provide a commissioning date for the 1,320 MW plant. Investors should therefore distinguish between the signed PSA, the tariff-adoption requirement and the subsequent development of the generating project.

Why does the 1,234 MW contract matter for Adani Power and Uttarakhand?

The 1,234 MW contract gives Adani Power a long-duration supply arrangement with a state distribution utility, spanning 25 years. For the company, the signed PSA provides a documented offtake framework for the proposed thermal capacity associated with the award.

For UPCL and Uttarakhand, the agreement is intended to secure contracted coal-based power over a long period. The capacity involved is significant because it combines 1,234 MW of net ex-bus supply with an installed plant capacity of 1,320 MW. The agreement's ultimate financial and operational effect will depend on tariff adoption and project execution.

The transaction also reflects continued use of competitively bid long-term power procurement by state utilities. Thermal capacity remains part of such procurement plans where utilities seek firm supply, even as India's power sector continues to add renewable generation and expands transmission infrastructure.

The signed PSA does not itself disclose revenue, capital expenditure, financing details or a start date for power supply. As a result, the filing establishes the contractual period and capacity but does not permit a calculation of the agreement's value from the information available.

Conclusion

Adani Power has progressed from winning UPCL's tender and receiving an LoA on October 13 to signing a 25-year PSA for 1,234 MW of net ex-bus thermal supply. The contract is supported by 1,320 MW of installed capacity and follows Uttarakhand's approval of a long-term coal-based procurement arrangement.

The next disclosed matter to watch is the Uttarakhand Electricity Regulatory Commission's adoption of the tariff under Section 63 of the Electricity Act, 2003. Further updates on the Chhattisgarh project, including development milestones and the commencement of supply, were not specified in the available filing.